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Essay heading: Canadian Income Tax I
 
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Issue: Business
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Date added: December 12, 2000
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No of pages / words: 2 / 452
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Just as one would try to minimize cost of goods sold. -after tax cashflows/costs show true benefits or true costs. -the cost of a 10% wage increase/debt interest to a person in a 40% tax bracket (employer, corporation) is 6% after tax (0.1 x 0.4 – 0.1 = 0.06) -the method of business acquisition: ie buying controlling shares vs acquiring the assets and goodwill alter the amount and timing of taxable income, therefore changing after tax cash flow...
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The Fundamental Income Tax Structure and its Complexity -Taxpayers: only 3 entities subject to tax in Canada: Individuals, Corporations, Trusts -Types of Income: each taxpayer can earn 5 types of income, 4 which apply to most businesses: Business/Property/Employment/Capital Gains income. -Business and Investment Structures: there are 6 business structures and only 3 of them are directly taxed, these 6 are: proprietorship, corporation, partnership, limited partnership, joint venture and income trusts...
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